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Foot Locker Banks on Retro

Foot Locker (NYSE: FL) is taking a step in the right direction with its latest store on 34th street in NYC. They have done an excellent job of not only curating their merchandise assortment to tell a unified theme of retro nostalgia, but it has also brought back a sense of what the sport and streetwear brands are through the music played in-store and digital screens. The 34th street location is selling the Puma (ETR:PUM) Rihanna’s Fenty collection, the Puma collaboration with Stampd. The Adidas Originals Collection (ETR:ADS) and of course the House Of Hoops, driving the latest Jordan Revival.

We have shopped a variety of the Foot Locker stores recently and have noted they are driving fashion trend sneakers, many on the trending "retro" nostalgia across all brands. As the athleisure movement evolves into a more fashion forward sportswear look (some still banking on the trending ‘90s revivals), brands and stores will be competing to gain market share through fashion and tech led design. As Foot Locker has tapped into this trend, they have brought in a large assortment of brands, mostly in women’s apparel, which is design led.

We have been impressed with the Foot Locker assortment of the” hot sneakers”, especially from Adidas and Puma this quarter. As active apparel and athletic footwear are categories with positive sales and consumer interest, we expect Foot Locker to be a long term positive.

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